The Ratio of the Prices of Two Goods Is Equal

question 90

Multiple Choice

The ratio of the prices of two goods is equal to the ratio of the marginal utilities of the two goods at:

• A)the vertical intercept of the budget line.
• B)the optimal consumption bundle.
• C)the horizontal intercept of the budget line.
• D)the intersection of the budget line with the highest indifference curve.

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Definitions:

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, consisting of nerves and ganglia that connect the brain and spinal cord to the limbs and organs.

Autonomic Nervous System

is a control system that operates unconsciously and regulates bodily functions such as the heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

Somatic System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Autonomic System

A part of the peripheral nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.